Correlation Between BNP Paribas and SSgA SPDR
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By analyzing existing cross correlation between BNP Paribas Easy and SSgA SPDR ETFs, you can compare the effects of market volatilities on BNP Paribas and SSgA SPDR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BNP Paribas with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and SSgA SPDR.
Diversification Opportunities for BNP Paribas and SSgA SPDR
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BNP and SSgA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and BNP Paribas is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BNP Paribas Easy are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of BNP Paribas i.e., BNP Paribas and SSgA SPDR go up and down completely randomly.
Pair Corralation between BNP Paribas and SSgA SPDR
Assuming the 90 days trading horizon BNP Paribas Easy is expected to under-perform the SSgA SPDR. In addition to that, BNP Paribas is 3.85 times more volatile than SSgA SPDR ETFs. It trades about -0.31 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.19 per unit of volatility. If you would invest 5,212 in SSgA SPDR ETFs on September 25, 2024 and sell it today you would earn a total of 30.00 from holding SSgA SPDR ETFs or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BNP Paribas Easy vs. SSgA SPDR ETFs
Performance |
Timeline |
BNP Paribas Easy |
SSgA SPDR ETFs |
BNP Paribas and SSgA SPDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNP Paribas and SSgA SPDR
The main advantage of trading using opposite BNP Paribas and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, SSgA SPDR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas vs. iShares VII PLC |
SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR vs. iShares VII PLC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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